Correlation Between Cosmos Group and Sentage Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cosmos Group and Sentage Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cosmos Group and Sentage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosmos Group Holdings and Sentage Holdings, you can compare the effects of market volatilities on Cosmos Group and Sentage Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cosmos Group with a short position of Sentage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosmos Group and Sentage Holdings.

Diversification Opportunities for Cosmos Group and Sentage Holdings

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Cosmos and Sentage is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cosmos Group Holdings and Sentage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentage Holdings and Cosmos Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cosmos Group Holdings are associated (or correlated) with Sentage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentage Holdings has no effect on the direction of Cosmos Group i.e., Cosmos Group and Sentage Holdings go up and down completely randomly.

Pair Corralation between Cosmos Group and Sentage Holdings

Given the investment horizon of 90 days Cosmos Group Holdings is expected to generate 60.37 times more return on investment than Sentage Holdings. However, Cosmos Group is 60.37 times more volatile than Sentage Holdings. It trades about 0.22 of its potential returns per unit of risk. Sentage Holdings is currently generating about -0.22 per unit of risk. If you would invest  0.01  in Cosmos Group Holdings on February 4, 2024 and sell it today you would earn a total of  0.00  from holding Cosmos Group Holdings or generate 50.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

Cosmos Group Holdings  vs.  Sentage Holdings

 Performance 
       Timeline  
Cosmos Group Holdings 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Cosmos Group Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Cosmos Group reported solid returns over the last few months and may actually be approaching a breakup point.
Sentage Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sentage Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Cosmos Group and Sentage Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cosmos Group and Sentage Holdings

The main advantage of trading using opposite Cosmos Group and Sentage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosmos Group position performs unexpectedly, Sentage Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sentage Holdings will offset losses from the drop in Sentage Holdings' long position.
The idea behind Cosmos Group Holdings and Sentage Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Content Syndication
Quickly integrate customizable finance content to your own investment portal
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk